SPY’der Pig Spy’der Pig!

Posted by Investing Freak on September 21, 2010
Market Analysis

Well it surely has been a lifetime (one month) since I last posted but don’t blame me much because life has become much busier and time consuming. Don’t worry though I won’t leave fellow freaks without some delicious charts before I return to the freakishly busy life of mine .

First off for some humor Here’s my Inspiration to the awesome title. 🙂

Ok so without even mentioning any recent news because I really don’t care if the Economy officially came out of recession last summer or if Larry Summers will finally leave his post at the end of the year because I am a technical trader and I like to trade what I see rather than what I hear. If I traded what I heard then I would be a BOOOYAH Cramerica Fan which would have made me millionaire by now if I had invested billions.

Lets start off with an hourly chart for the past 20 days of the SPY so we can see what happened while the blog was inactive.
I will not reveal the indicators of lines used in the chart but with some trial and error you might be able to figure it out :). As you can see starting September 1st the market broke above the blue line while at the same time volume picked up and a special indicator went from red to green.  SPY at the time was around 107 and today it reached a high of nearly 115.

Thats great and all as we see what happened in the past but what about the “Freak”ing future?  I am not calling a market top yet but I must make my intentions known that if either 115 or 113 are broken on the hourly while the volume is there then that will determine the future.  If I were to call it? I would say the volume increased the last two hours of today’s trading thanks to Ben Balloonhead and the special indicator below is heading downhill (but still green).  My ideal trade would be when SPY cuts below 113 and the indicator turns red.  Remember that even if what I am preaching does not happen at least it is a more informed decision than pressing a “Buy Buy Buy, Sell Sell Sell” button. (Click Image below to Enlarge)

Next up we will visit something I like to call the Bollinger Bands and again I will not reveal the inputs but I hope you are understanding (you can always figure it out with some hard work), as you can see I have also shown the signals my system has given to me. I am awaiting for that Sell signal which might send SPY to 110’s at the very least if it displays me that lovely red “S”.  of course there have been times where the market just consolidates along the blue lines and then moves up in which case I wouldn’t enter until I see my system print the signals while I also evaluate the chart already posted above.

Are you falling asleep yet? If so you aren’t a real Investing Freak because only the elite know that without doing your homework you will go into the market like a headless chicken and come out a loser. Now Time to introduce the updated Investing Freak special chart which I last displayed back in June. If you click on the link and go to that post you will see a  “price line” drawn near 1152 (it’s really just a bit over 1150 if you get microscopical), I mention that because today the market reached up to 1048.59 and retreated a full 10 points!  10 points is a sweet intra-day move which you can make a killing on if you play it right. Anyways here is the updated chart since I can see you falling asleep. (Click below to Enlarge)

Recap: I’ve been busy, market has been behaving according to plan and is not showing more negative signs than positive but no definite reversal has been noticed so just use the charts above for reference. If they are helpful, you are welcome to post comments so we can liven up the blog again.

Until next post…. Enjoy Making money!!


7 Comments to SPY’der Pig Spy’der Pig!

  • K, you’ve been busy! Hope you had a great vacation. I’ve yet to take one. 🙂

    I like the charts you’re posting. Kind of a hybrid of BBs mixed with Fibs.

    Keep it coming.

  • Awesomeness. So was balloonhead(lol) saving these dollar tricks for when market needed them most? Got a little volatile today, was nice. Seems as if dollar wasn’t so low couldve been drastic.

  • I don’t trust high gold prices or low $. Either can bust out in the other direction at these extremes. The Fed will pump more $, but will it help?

  • Sorry Guys,
    a tad dissapointing but my days are 12+ hours of school work combo at the moment! 🙂

    tomorrow though I will be attending a Volatility Seminar so I’m still in the game and the past 2 days volatility in options has been amazingly good so I’m making a few bucks while doing other things.

    Shall we aim for 2 posts a month for now? Bi-Weekly? 🙂

    Thanks for sticking around at an “inactive” blog!

  • the cool thing is, when you do post you do it well, i always lmao and get some good gold nuggets.

    Hey, VXX 4-1 reverse split, an attempt to jump-start some life into the dying volatility?

  • Dan,
    a 1-4 reverse split is always a bad thing.
    I would short that ETF even more.

    VXX if you look at it compared to the VIX is way off!

    Now 2:1 splits are very healthy. I just wonder when AAPL will decide its time. (not that I’ll buy, :hint hint”)

  • LMAO awesome enron task force. hey I figured it was suckin, and just an attempt however lame it was trying to make an easy play on vol appear appetizing… like TZA/s reverse split not so long ago and getting pretty close to its original price before that split. But i wouldn’t write off the VXX totally, house of cards approaching some interesting heights